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Slide chapter 3 - Ngôn ngữ kinh tế thương mại 2
Slide chapter 3 - Ngôn ngữ kinh tế thương mại 2
Politics, Law,
and Business Ethics
Chapter Objectives
3-2
Roles of History and Culture
3-3
Roles of History and Culture
3-4
Political System
3-6
Anachy
Theocratic totalitarianism
(controlled by totalitarian religious leaders): Afghanistan
(Taliban) and Iran
Secular totalitarianism
(leaders rely on military and bureaucratic power for control)
Risk Factors
• Arbitrary nature of
business can mean that
laws are vague or do not
exist
• Bureaucrats may
interpret laws however
they wish
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Pluralism
Chu nghia da nguyen
3 - 14
Democracy
Government leaders are elected directly by
the wide participation of the people or their
representatives
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Life and Business in Democracies
Representative Democracy: citizens elect
individuals from their groups to represent their
political views.
• Freedom of expression
• Periodic elections
• Full civil and property rights
• Minority rights
• Nonpolitical bureaucracies
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Democracy
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Answer to Discussion Question
Totalitarian governments tend
to share imposed authority, a lack
of constitutional guarantees, and
restricted political participation.
Democracies strive to provide
freedom of expression, periodic
elections, full civil and property
rights, minority rights, and
nonpolitical bureaucracies.
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Change up 1
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Political Risks
Likelihood that a gov’t or society undergoes
political changes negatively affecting local
business activities:
- Threatening market of an exporter (lower
demand);
- Threatening production facilities of a
manufacturer;
- Threatening ability to repatriate profits.
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Types of Political Risk
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Conflict and Violence
.
3 - 23
Conflict and Violence
3 - 24
Terrorism and Kidnapping
3 - 25
Manager’s Briefcase:
Your Global Security Checklist
Fly nonstop when possible and avoid unsecured
areas of airports
During your stay, vary your routines and means
of transportation
Keep a low profile and refrain from loud, flashy
behavior
Give friendly but cautious answers to personal
questions
Travel with others when possible and ask
directions guardedly
Know local emergency procedures before trouble
strikes
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Property Seizure
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Managing Political Risk I
- Forming informal or formal
Partnerships (JV, strategic alliances,
cross-holding of company stock) to
leverage expansion plans;
- Localizing (modifying) operations,
-product mix, some other elements to
Adaptation
suit local tastes and culture;
Incorporating risk into
business strategies - Offering development assistance
to improve local distribution
and communications network
and improve quality of life for locals;
- Obtaining insurance to protect
company against losses and
obtain project financing.
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Managing Political Risk II
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Managing Political Risk III
Lobbying
Influencing local lawmakers
by meeting local public
officials, influencing their
Influence local politics
positions on relevant issues.
Presenting firm’s views
on political matters Corruption
- Directs scarce financial
resources into wrong projects;
- Creates “uneven” playing field;
- Scarces away foreign investors.
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Managing Political Risk IV
Avoidance
Restraining from investing in a country
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Discussion Question
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Answer to Discussion Question
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LEGAL SYSTEM
A country’s laws:
- defines manner in which business
transactions are to be carried out;
- describes what parties need to do if
there’s a conflict and how to work it out.
Common Law
Tradition
Nation’s legal history
Precedent
Past cases before the courts
Usage
How laws are applied
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COMMON LAW
. 3 - 42
Global Legal Issues I
Intellectual property
- Result of intellectual talent and abilities
- Piracy/counterfeits a serious problem
Patent
Excludes all but the inventor from making, using,
or selling the invention (WTO = 20 years)
Trademark
Words or symbols that distinguish a product and
its manufacturer ("Coca-Cola")
Copyright
Freedom of creator to publish or dispose of original
works as they choose ("Happy Birthday to You")
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Business Software Piracy
Source: Based on the Eighth Annual BSA and IDC Global Software Piracy Study (Washington, D.C.; Business Software Alliance, May 2011), pp. 8–9, (www.bsa.org/globalstudy)
3 - 44
Global Legal Issues II
Standardization
- Interpreting and applying laws uniformly
Product safety and liability
- Responsibility for damage, injury, or death
Taxation
- Income, sales, consumption, and VAT
Antitrust (antimonopoly) laws
- Prevent market sharing, price fixing, and
unfair advantage
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Discussion Question
3 - 46
Answer to Discussion Question
Intellectual property rights are
legal rights to resources that
result from intellectual abilities
and any income the resources
generate.
They can be traded, sold, and
licensed in return for fees and/or
royalty payments.
Intellectual property laws are
designed to compensate people
whose property rights are
violated.
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Ethics and Social Responsibility
PHILOSOPHIES
. 3 - 48
Corporate Social Responsibility Issues
3 - 49
International Relations
Favorable international
political relations foster:
Stable business
environments
Improved business
communications
Efficient distribution
systems
Expanded opportunities
Diminished risk levels
Prompt and equitable
dispute resolution
. 3 - 50
Discussion Question
3 - 51
Answer to Discussion Question
3 - 52
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otherwise, without the prior written permission of the publisher.
Printed in the United States of America.
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